European Luxury Brands turn to Blockchain to Counter Counterfeits
By Keith Asumba
A consortium of luxury brands consisting of Louis Vuitton, Prada and Cartier have formed an alliance that will rely on blockchain and its advantages to curtail the counterfeiting of their high-end products.
The luxury goods market saw its online sales figures rise to $58.9 billion in the year 2020, a 48.4% increase from 2019, according to statistics from consulting firm Bain & Company. However, the industry continues to face a gruelling counterfeit challenge, so to guarantee the customers of the quality and authenticity of their goods, the high-flying consumer brands have turned to blockchain.
A ledger that stores data into transparent and verifiable blocks, blockchain presents the most effective solution that these brands can rely on to address shared issues across the luxury industry and, at the same time, enhance the customer experience. Known as AURA and built on the ethereum platform, the Aura Blockchain Consortium will provide proof of authenticity for items and trace their origins from raw materials to point of sale and even beyond to the previously-owned goods market. It will be in the form of a mobile app.
AURA presents multiple benefits for both brands and customers alike; customers will be able to prove the authenticity of goods, view product history information and access exclusive services availed by the brands. For brands, on the other hand, they will be able to ensure that goods are made and handled vis a vis their brand standards and protect markets against counterfeiting, enabling them to tighten their grip on the secondhand market.
Möet Hennessey Louis Vuitton (LVMH) intends to implement AURA to its host of 60+ brands, and even make it accessible to its competitors. However, they do not intend to use cryptocurrency as a mode of payment – at least not yet!